Golden Spoon Investment Portfolio - Chapter 361

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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361. The Japanese stock market will be a nightmare, but it’s an opportunity for us to make serious money.

The next morning.
Seok-won arrived at the office as usual and sat at his desk, reviewing the Goldman Sachs report on Korea that Landon in New York had faxed over the previous night.
It was a brief report—no more than twenty pages—but the contents were far from trivial.
As I read through it, my expression grew increasingly tense, acutely aware that this analysis could serve as the trigger that would thrust Korea—already vulnerable with its unstable exchange rate—directly into the eye of the foreign exchange crisis ravaging Asia.

“Hmm.”

After closing the final page and straightening my posture, I let out a low, involuntary murmur.
The report laid bare, one by one, every problem and vulnerability Korea faced.

“Even I can see it’s sitting on a time bomb about to detonate. There’s no way to refute it.”

I muttered the words with a bitter expression.
While the report identified multiple issues, the most alarming was undoubtedly the excessive short-term foreign debt.
More critically, it wasn’t government debt—it was the burden carried by major corporations, banks, and other financial institutions.

“Short-term foreign debt due within a year exceeds Korea’s foreign exchange reserves. To hedge funds and currency speculators, it’s an easy meal waiting to be devoured.”

I had no doubt that many of the currency speculators who’d seen the Goldman Sachs report were now turning their greedy eyes toward Korea—a market they’d previously ignored—salivating at the prospect.
It was inevitable, but the sensation that a fierce tidal wave was about to crash down on Korea left me deeply unsettled.
As I leaned back in my chair, my expression troubled, my mobile phone vibrated on the desk with a soft buzz.
I glanced at the number on the display and immediately pressed the answer button.

“I was just about to call you. Perfect timing.”
[Have you reviewed the report I sent?]

I glanced at the report lying on my desk.

“I’ve read it all. The volume isn’t much, but the analysis of Korea’s situation is remarkably candid.”

Landon’s voice came through slightly subdued.

[There’s word that Merrill Lynch is also drafting a similar report.]
“Merrill Lynch too?”

Narrowing my brow, I asked, and Landon answered immediately.

[Yes. As you well know, if reports with similar content come out consecutively from two securities firms with significant influence on Wall Street, the likelihood of currency speculators shifting their attention to Korea will increase considerably.]
“That would be the case.”

I narrowed my brow with a dissatisfied expression.

“It’s quite a coincidence that Goldman Sachs and Merrill Lynch released reports with similar content as if they’d made a pact.”
[Do you suspect there’s someone pulling strings behind this?]

I had entertained that suspicion for a moment, but I quickly shook my head.

“Rather, it’s that Korea’s situation looks so unstable to anyone’s eyes that it’s simply not good.”
[I think the same way. With this foreign exchange crisis causing Asian nations including Hong Kong to collapse or be severely shaken one after another, only three countries remain—Korea, Japan, and Taiwan. It’s reasonable to see that our turn has come.]

I smiled bitterly and continued.

“Setting aside Japan, which possesses the yen as a quasi-reserve currency, and excluding Taiwan, which has a relatively solid defensive structure that makes it difficult to topple, Korea naturally becomes the next target.”
[That does seem to be the case.]

Landon hesitated briefly before asking carefully.

[Will you participate if an attack on Korea begins?]

I had already made up my mind, so I answered without the slightest hesitation.

“It would be a good opportunity to make substantial profits, but I’ve already earned sufficient returns elsewhere. I’m not particularly inclined to participate in plundering my homeland.”
[I thought you would say that.]
“That said, I won’t fight against the currency speculators targeting Korea either.”

Landon released a small sigh of relief, apparently having worried that I might actually stand against the currency speculators to protect Korea.

[That’s wise thinking. Of course, if the boss were to face off against other hedge funds, you wouldn’t lose, but the gains wouldn’t be substantial. There’s no reason to take on such unnecessary risk.]

At Landon’s response, I chuckled and spoke.

“If hedge funds short the won while I take the opposite position and defend the exchange rate, the profits to be reaped wouldn’t be insignificant.”
[That’s true, but….]

Seeing Landon’s flustered expression, Seok-won added reassuringly.

“I’m joking. Even for me, taking on all of Wall Street would be reckless. And even if we won, the hedge funds that lost money would gnash their teeth and turn hostile. Perhaps later, but right now we’re not equipped to handle that.”

After reassuring Landon, I adjusted the receiver in my hand.

“In any case, even if Korea’s situation becomes prominent on Wall Street, the hedge funds shouldn’t be able to reach out immediately, right?”
[Hong Kong is a formidable opponent as well, so they likely won’t have the capacity to spread their forces while fighting there.]
“Despite the continued attacks, Hong Kong is holding firm without collapsing. What’s the mood among the hedge funds?”
[Since they anticipated from the start that this wouldn’t be easy, there haven’t been any significant movements yet.]

Seok-won nodded slightly, as if he’d expected this, and spoke.

“That may be true now, but if this battle drags on like this, the hedge funds will start burning through their reserves just as much as the Hong Kong government.”

Currency speculation was gambling in its purest form—one successful bet could yield enormous profits, but failure meant complete financial ruin.
Especially since most hedge funds, including the Quantum Fund, were short-selling the Hong Kong dollar with high interest rates and leveraged positions, the burden only increased with each passing day.
That’s why the cardinal rule of hedge funds was to strike decisively at the critical moment, secure profits exceeding the interest costs, and exit quickly.

[That’s certainly true, but even if Hong Kong is the world’s third-largest foreign exchange reserve holder, seeing them attempt the impossible—defending both exchange rates and stock prices with limited dollars, ultimately abandoning the stock market—they won’t hold out much longer.]

Seok-won shrugged with a “we’ll see.”

“Both sides are playing chicken, so we won’t know the winner until the results are in. But this time, I believe Hong Kong has better odds than the hedge funds.”
[I understand. That’s why you’re short-betting only on the Hang Seng Index futures rather than short-selling the Hong Kong dollar.]

Seok-won smiled, then a sudden thought occurred to him and he asked.

“By the way, have all the settlements finished on the Dow futures bets?”
[I should have reported that, but I forgot with the Goldman Sachs report that just came out.]

Landon continued with a slightly excited and proud tone.

[We earned a 12.6% return, bringing in $1.678 billion. After deducting taxes and expenses, our final profit is $1.53 billion.]

Seok-won’s expression showed satisfaction at the profits that had come in as expected.

“That turned out well. Good work.”
[If the other hedge funds found out that we’ve made over 1.5 billion dollars in profit in New York over just a few days while they’re bleeding out fighting in Hong Kong, they’d be absolutely livid.]
“With margin calls going off all over the place in this crash, they’ll be even more upset.”

I nodded in agreement with Landon Shore’s words, smiling.

[I’ve heard rumors that several small hedge funds at Park Avenue 237 have already gone bankrupt. And there’s talk that Mundell Partners has placed hundreds of millions of dollars in short bets on Nikkei futures.]

Hearing this, the face of the Mundell Partners CEO—someone I’d had an awkward history with—came to mind.

“They were a step behind us, but with the Asian financial crisis still leaving plenty of downside room, they’ll make some decent money this time around.”
[The Nikkei has already dropped over 20% from its all-time high. Are you saying it will fall further?]

I smirked, raising one corner of my mouth.

“My target profit margin for betting on Nikkei futures is a minimum of 50%.”
[What?]

Landon Shore gasped in shock, drawing in a sharp breath.
For my prediction to come true, the Japanese stock market would need to experience a collapse on the scale of a bubble burst.
No matter how severe the impact of the Asian financial crisis was, there was doubt about whether Japan would be shaken that badly.
But since the one making the prediction was none other than me, Landon Shore couldn’t help but swallow hard, thinking that despite his skepticism, it might actually happen.

[If that really happens, it would be nothing short of a catastrophe.]

I answered with a thick smile playing at my lips.

“The Japanese stock market will become a nightmare, but for us with our short positions in place, it’s an opportunity to make serious money.”

***

Mapo Daeheung Group Headquarters.
When President Park Jin-hyung entered the Chairman’s Office after being summoned, Chief Secretary Gil Seong-ho and Min Pil-gi, the president of Midopa Department Store, were already seated on the sofa, with Chairman Park Tae-hong in the center wearing a grave expression.

“Have a seat.”

Chairman Park Tae-hong looked up at his eldest son and spoke.

“Yes.”

Park Jin-hyung carefully gauged the atmosphere before taking the empty seat beside Chief Secretary Gil Seong-ho.
Chairman Park Tae-hong, impeccably dressed in a crisp white dress shirt and crimson silk tie, exhaled a long plume of smoke, then stubbed out his half-burned cigarette in a crystal ashtray.
He then surveyed the assembled group and spoke in a grave, measured tone.

“I had lunch with Representative Ju today, and he asked whether we’d be interested in acquiring Taehwa Shopping, which has filed for court receivership.”
“…!”

All three men wore expressions of utter surprise at this completely unexpected proposal.

“Surely you didn’t agree to the acquisition, did you?”

Park Jin-hyung asked urgently, his face grave.

“I dodged the question and ended the meeting by saying I’d consider it.”
“Phew. You handled that well.”

Chairman Park Tae-hong leaned back and narrowed his eyes slightly at his eldest son’s obvious relief.

“So you’re opposed to the acquisition.”

Park Jin-hyung immediately met Chairman Park Tae-hong’s gaze with a serious expression.

“Under normal circumstances, perhaps—but with the economy deteriorating this rapidly, acquiring Taehwa Shopping would bring far more losses than gains.”

Chief Secretary Gil Seong-ho chimed in from beside him.

“I agree. Lotte Department Store has already expanded into Busan. The fact that they approached us with this proposal almost certainly means they pitched it to Lotte first and were rejected.”
“That’s probably the case.”

Chairman Park Tae-hong nodded as if he’d already suspected as much.
He then turned his attention to Min Pil-gi, the president of Midopa Department Store, who sat on the sofa with his arms crossed.

“What’s your take on this?”
“We’ve already halted construction on the Gangnam Branch and are operating under strict austerity measures. Even if the government and creditors forgive a substantial portion of the debt, taking on a burden as large as Taehwa Shopping would be too much to bear.”

Min Pil-gi, like the other two, expressed skepticism.
Chairman Park Tae-hong didn’t seem particularly disappointed, as if he’d never been enthusiastic about it from the start.

“It’s a tempting opportunity, but acquiring Taehwa Shopping now would be like picking up a live grenade. Since everyone opposes it, we should decline the proposal.”

Park Jin-hyung, who had been anxiously fretting over the possibility that Chairman Park Tae-hong might become greedy, felt his inner tension ease.

“By the way, has the payment come in from the sale of the Ansan Manufacturing Plant?”

Park Jin-hyung straightened his posture and responded.

“Yes. All 20.9 billion won was deposited this morning.”
“With liquidity drying up in the market, every penny of cash is precious right now. Don’t use it anywhere else—keep it secured as a contingency fund.”
“Understood. I’ll do that.”

Chairman Park Tae-hong gazed at the assembled people and let out a frustrated sigh.

“These days, there’s no end to the news of defaults and companies collapsing. I can’t even guess when things will improve.”

Worry was etched across Chairman Park Tae-hong’s face.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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